[akhamid29]

When calculating the cost of debt for redeemable bonds, using the irr method I found that the cost of capital would differ slightly if u use different sets of DF for example

10 % and 3 % or 7% and 4%

This may give me a cost of debt of 6.3% and 6.6% respectively. I’m assuming it’s because of the running off during calculation. However if I was to round these off to nearest % I would get 6 and 7 %.

My question is whether this would be a problem in the exam. Thank you.

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